In 1981, U.S. policy makers predicted a balanced budget as:
a. the budget included a decrease in defense expenditures
b. the budget included an increase in the tax rate.
c. the budget included an increase in unspecified government spending.
d. the growth in GDP was expected to be large enough to lead to an increase in tax revenues despite the tax cut.
e. the growth in GDP was expected to be small enough to require less government spending.
d
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The ability of a monopoly to charge a price that exceeds marginal cost depends on the
A) price elasticity of supply. B) price elasticity of demand. C) slope of the demand curve. D) shape of the marginal cost curve.
When "rent controls" result in a shortage of housing, landlords
A) use criteria other than price to allocate housing. B) lower the price to allocate the housing. C) attempt to attract renters. D) None of the above.